In-Depth Technical Analysis of SOUTHERN CO/THE (NYSE:SO).

Our stock screener has spotted SOUTHERN CO/THE (NYSE:SO) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:SO.

What is the technical picture of SO telling us.

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Overall SO gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, SO is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, SO did better than 87% of all other stocks. We also observe that the gains produced by SO over the past year are nicely spread over this period.
• SO is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so SO slightly outperforms the market at the moment.
• In the last month SO has a been trading in the 85.00 - 93.04 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• SO is an average performer in the Electric Utilities industry, it outperforms 55% of 46 stocks in the same industry.

Check the latest full technical report of SO for a complete technical analysis.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, SO has a 8 as its setup rating:

SO has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 91.40. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 91.15, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How can SO be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

More breakout setups can be found in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.